Incap Corporation                                               
Interim report                                    7 November 2018 at 8.30 a.m. (EET)


Key figures in January-September 2018

  • The Group's revenue amounted to EUR 42.5 million, up 15% on the corresponding period of previous year (Jan-Sep 2017: EUR 37.1 million).
  • The Group's operating profit (EBIT) amounted to EUR 5.5 million, up 51% on the corresponding period (EUR 3.6 million).
  • Net profit for the period amounted to EUR 3.9 million, up 52% on the corresponding period (EUR 2.6 million).
  • The company specifies its estimate for revenue and result for full year 2018.

The information in this business review concerns the development of Incap Group in January-September 2018 and in the corresponding period of 2017, unless otherwise stated. The figures are unaudited.


(EUR thousand)

Revenue 42,465 37,069 15,500 14,472 12,493 48,543
Operating profit/loss (EBIT) 5,493 3,642 2,420 1,924 1,149 4,529
Profit for the period 3,925 2,580 1,835 1,390 700 3,116

Key events of the period

Incap Group's business continued its strong growth developing in line with the expectations in both factories in Estonia and in India. The revenue amounted to EUR 42.5 million, increasing by 15% on the comparison period in 2017 (EUR 37.1 million). The revenue in the Indian factory was increased mainly by the growing demand of established customers. The factory in Estonia has won several new customers, and the manufacturing of their products has grown to volume series.

Revenue growth and successful cost management resulted in favourable profitability.  The operating profit (EBIT) amounted to EUR 5.5 million, showing a growth of 51% on the comparison period (EUR 3.6 million). The share of operating profit out of revenue improved and amounted to 13% (10%).

The company's financing position is strong and the equity ratio improved further being on 30 September 2018 at 44.5% (40.4%).

Outlook for 2018

Incap's estimates for future business development are based both on its customers' forecasts and on the company's own assessments.

The company repeats that the Group's revenue and operating profit (EBIT) in 2018 will be clearly higher than in 2017 and specifies that the estimated revenue in 2018 is approximately EUR 56-58 million and the operating profit (EBIT) approximately EUR 6.5-7.5 million. The Group's revenue in 2017 amounted to EUR 48.5 million and the operating profit (EBIT) to EUR 4.5 million.

According to the previous estimate given on 12 October 2018 the Group's revenue and operating profit (EBIT) in 2018 were estimated to be clearly higher than in 2017.

Incap will publish its full-year report for January-December 2018 in accordance with IAS 34 on Wednesday, 13 February 2019.

Otto Pukk, President and CEO of Incap Group:

"Our business has shown strong development during this year and the third quarter of the year was again excellent both as to revenue and profitability.

The revenue increased mainly thanks to the growing demand of established customers. Also the manufacturing quantities for new customers have gradually climbed from pre-series to higher volumes.

We have kept our organization structure lean and continued with the strict management of costs, and thanks to these actions our profitability has remained at a good level.

Along with the increased demand of our customers we have focused on improving and increasing the manufacturing capacity. The factory expansion and the increase of SMT capacity in our Indian factory were indeed necessary, and in order to secure the customer deliveries we will continue enhancing the production further. The development actions implemented in our factory in Estonia have resulted in increased efficiency.

The electronics manufacturing services business has suffered from problems in component availability during the whole year. We have provided for the shortage of components by increasing our inventory moderately and by cooperating closely with our suppliers. With these actions we have succeeded in securing deliveries to our customers as agreed.

We face the future with confidence. Prospects for contract manufacturing services are still bright and we trust that with our efficient operational model our competitive edge in the market endures also in future. Our financial position is strong and we are able to grow our business also by mergers and acquisitions should the right opportunity arise."

Board of Directors

For additional information, please contact:
Otto Pukk, President and CEO, tel. +372 508 0798

Nasdaq Helsinki Ltd.
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Incap Corporation is an international contract manufacturer. Incap's customers are leading suppliers of high-technology equipment in their own business segments, and Incap increases their competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and Hong Kong, and the company currently employs approximately 720 people. Incap's share is listed on the Nasdaq Helsinki Ltd. as from 1997. Additional information:

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Incap Oyj via Globenewswire